TORONTO, Oct 5 (Reuters) - Canada's dollar rose against the
U.S. dollar on Monday morning as the Group of Seven weekend
meeting reaffirmed the market's view that policymakers are
comfortable with a gradually weakening greenback.

The G7 finance ministers and central bankers, who met in
Istanbul, broke no new ground on currencies, saying too much
foreign exchange volatility tended to threaten economic
stability. [ID:nL3421338]

Analysts said that left the U.S. dollar open potentially to
further weakness, opening the door for a number of currencies
including the Canadian dollar, to rise against the greenback.

"In part it is just general U.S. dollar weakness," said
Adam Cole, global head of foreign exchange strategy at RBC
Capital Markets in London. "We came through the G7 meeting on
the weekend without any concern on the weaker U.S. dollar and
that's just been a signal to sell U.S. dollars generally."

At 7:30 a.m. (1130 GMT), the Canadian unit was at C$1.0749
to the U.S. dollar, or 93.03 U.S. cents, up from C$1.0825 to
the U.S. dollar, or 92.38 U.S. cents, at Friday's close.

The rise in the Canadian dollar was contained as oil prices
dipped below $70 a barrel on concern over the pace of the U.S.
economic recovery and any revival in energy demand. [O/R]
Canada is a key exporter of oil and its currency is often
influenced by prices for the commodity.

Cole said the Canadian dollar's performance will continue
to be driven by events outside of Canada until Friday when the
key domestic report for the week, September jobs data, is due.

The report is expected to show the Canadian economy created
5,000 jobs last month.

Canadian bond prices were a touch firmer across the curve,
largely mirroring a move in the bigger U.S. Treasury market.
(Editing by Padraic Cassidy)